Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia on Monday proposed increasing Indonesia's subsidized diesel allocation to between 18.80 million and 19 million kiloliters in 2027, up from this year's quota of 18.64 million kiloliters.

The proposal comes as the government seeks to ensure adequate fuel supplies while maintaining energy subsidies despite heightened volatility in global oil markets.

Subsidized diesel, marketed under the Biosolar program, remains heavily supported by the government and is currently sold at Rp 6,800 ($0.38) per liter. The price has remained unchanged despite sharp fluctuations in global crude oil prices and recent increases of more than 30% in non-subsidized gasoline and diesel products.

“The subsidized diesel allocation for 2026 is 18.64 million kiloliters. For 2027, we are proposing an allocation of between 18.80 million and 19 million kiloliters,” Bahlil said.

According to Energy Ministry data, subsidized diesel distribution reached 7.77 million kiloliters during the first five months of 2026.

The government is also proposing an increase in the allocation of subsidized kerosene, from 0.53 million kiloliters this year to 0.561 million kiloliters in 2027.

Subsidized kerosene distribution reached 0.21 million kiloliters as of May 2026.

Meanwhile, the quota for subsidized 3-kilogram LPG cylinders will remain unchanged at 8 million metric tons in 2027, matching this year's allocation, Bahlil said.

Distribution of subsidized 3-kg LPG reached 3.56 million metric tons during the January-May period.

Separately, the government proposed national crude oil production of 602,000-615,000 barrels per day for 2027, compared with this year's target of 610,000 barrels per day.

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